Credit and Finance for MSMEs: MSME Secretary AK Sharma said that over 3 lakh MSMEs have happened in July and August on the newly launched portal for registration Udyam Registration.
Credit and Finance for MSMEs: MSME dues pending by the government and central public sector enterprises, which has been among the biggest cause of capital crunch for small businesses, has largely been cleared, according to MSME Ministry Secretary AK Sharma. Addressing a CII initiative for liquidity infusion in MSMEs, Sharma said that through the online reporting mechanism for the clearance of dues, in the month of July, almost 75 per cent of the total pending dues has already been cleared, the industry association said in a statement quoting Sharma. The secretary said that the government is looking to replicate this mechanism at the state level also. Govt’s delayed payment monitoring portal MSME Samadhaan was launched in October 2017 to enable recovery of delayed payments for MSME from government organisations, departments etc. within 45 days of acceptance of goods and services.
The secretary also announced that over 3 lakh MSME registrations have happened in July and August on the newly launched portal for registration of MSMEs called Udyam Registration. The portal was launched in July for small businesses to register themselves paperless and based on self-declaration. The portal provides MSMEs with a registration number following which the registration certificate is issued. MSME Ministry in a statement in July had said that the certificate will have a QR code embedded through which details about the new enterprises could be accessed on the registration portal. Investment and turnover related information of the business linked with the PAN and GST is captured automatically from the government databases. Th secretary said that the number of registration is further picking up well even as he urged more units to register.
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Moreover, the government is also targeting to bring on board venture capital and private equity investors to participate in the Fund of Funds for MSMEs, the secretary alluded. The Fund of Funds was announced in May by Finance Minister Nirmala Sitharaman to infuse Rs 50,000 crore equity in MSMEs. Earlier this month, State Bank of India’s Chairman Rajnish Kumar in a virtual MSME conclave by FICCI had said that the fund is likely to be operationalized soon.
The fund was announced with a corpus of Rs 10,000 crore approved by the Cabinet in June along with the revision in the definition of MSMEs. The fund “will benefit over 25 lakh MSMEs under stress,” MSME Minister Nitin Gadkari had said in a statement in May. To be operated through a Mother Fund and few Daughter Funds, it would also encourage MSMEs to list on the main board of stock exchanges, the government had said while announcing the scheme in May.